Corporate/Labor/Trade Communications and Resources February 23, 2012 Tab #7

2012 FEC Information Division Objectives Examine rules on corporate/labor communicationsExamine rules on corporate/labor communications Review the definitions of:Review the definitions of: Express advocacyExpress advocacy CoordinationCoordination Electioneering communicationElectioneering communication Explain how corporation/labor organization’s facilities and resources can be used for election- related events and purposesExplain how corporation/labor organization’s facilities and resources can be used for election- related events and purposes 2012 FEC Information Division

Prohibited Source Key Points: ► Corporations & labor organizations cannot make contributions in connection with federal elections. ► The law includes limited exceptions that permit establishment of SSF and certain other activities FEC Information Division

What’s Restricted Coordinated communications by corporations and labor organizations must be limited to restricted class Coordinated communications restricted class 2012 FEC Information Division

What’s Permitted Corporations and labor organizations may use treasury funds to make independent expenditures and electioneering communications independent expenditures electioneering communications 2012 FEC Information Division

What’s Permitted Independent expenditures and electioneering communications must include disclaimers and be reported 2012 FEC Information Division

Coordinated Messages to General Public Other Communications to General Public Communications within Restricted Class Organization Communications 2012 FEC Information Division

Restricted Class Message A corporation, labor organization, trade or membership organization may communicate to its restricted class on any subject, without restriction FEC Information Division

Restricted Class Corporations Corporations ► Stockholders, executive and administrative personnel, and families of both groups. Labor OrganizationsLabor Organizations ► Members, executive and administrative personnel of organization, and family of both groups. Membership OrganizationsMembership Organizations ► Noncorporate members, representatives of corporate members, executive and administrative personnel, and family of all three groups. Trade AssociationsTrade Associations ► Executive and administrative personnel and noncorporate members, ► Representatives of corporate members with whom association normally conducts business.

2012 FEC Information Division Restricted Class Message Message Restricted Class Express Advocacy Okay CoordinatedOkay Reporting Form FEC Information Division

Express Advocacy Message unmistakably urges election or defeat of clearly identified federal candidate. Two Part Definition: Part A: Specific Call to ActionPart A: Specific Call to Action Part B: Only Reasonable Interpretation TestPart B: Only Reasonable Interpretation Test 2012 FEC Information Division

Express Advocacy Message unmistakably urges election or defeat of clearly identified federal candidate. Two Part Definition: Part A: Specific Call to ActionPart A: Specific Call to Action Part B: Only Reasonable Interpretation TestPart B: Only Reasonable Interpretation Test 2012 FEC Information Division

► Specific Call to Action Explicit words of advocacy for or against a federal candidateExplicit words of advocacy for or against a federal candidate Urging action with respect to candidates associated with a particular issueUrging action with respect to candidates associated with a particular issue Campaign slogan or wordsCampaign slogan or words Express Advocacy ▼ Specific Call to Action 2012 FEC Information Division

Message unmistakably urges election or defeat of clearly identified federal candidate. Two Part Definition: Part A: Specific Call to ActionPart A: Specific Call to Action Part B: Only Reasonable Interpretation TestPart B: Only Reasonable Interpretation Test Express Advocacy 2012 FEC Information Division

► Only Reasonable Interpretation Test: When taken as a whole and with limited reference to external events, such as the proximity to the election, could only be interpreted by reasonable person as containing advocacy of the election or defeat of one or more clearly identified candidates. Express Advocacy ▼ Only Reasonable Interpretation Test: 2012 FEC Information Division

Restricted Class Message Message Restricted Class Express Advocacy Okay CoordinatedOkay Reporting Form FEC Information Division

Coordination Made in cooperation, consultation or concert with, or at the request or suggestion of, a candidate, a candidate’s authorized committee, or their agents, or a party committee or its agents 2012 FEC Information Division

Three-Part Coordination Test As discussed in earlier workshops: ► Source of payment ► Content standard ► Conduct standard Review 2012 FEC Information Division

Restricted Class Message Message Restricted Class Express Advocacy Okay CoordinatedOkay Reporting Form FEC Information Division

Reporting Costs If guidelines followed, no prohibited contribution results.If guidelines followed, no prohibited contribution results. Organization files FEC Form 7 if it spends more than $2,000 for election.Organization files FEC Form 7 if it spends more than $2,000 for election. PAC may pay for expenses; no contribution results.PAC may pay for expenses; no contribution results FEC Information Division

Summary: Candidate and Organization can Expressly Advocate and Solicit Funds Candidate and Organization can Expressly Advocate and Solicit Funds Campaign can Collect Contributions Campaign can Collect Contributions Organization can Coordinate with Campaign on Plans, Projects, Needs Organization can Coordinate with Campaign on Plans, Projects, Needs Restricted Class Message 2012 FEC Information Division

Coordinated Messages to General Public Other Communications to General Public Communications within Restricted Class Organization Communications 2012 FEC Information Division

Beyond Restricted Class Message Beyond the Restricted Class Express Advocacy Yes CoordinatedNo ReportingYes 2012 FEC Information Division

Independent Expenditures Communications that expressly advocate the election or defeat of clearly identified candidate made without cooperation, consultation, request or suggestion of candidate or party committee EXPRESS ADVOCACY No Coordination Review 2012 FEC Information Division

Independent Expenditures Communications that expressly advocate the election or defeat of clearly identified candidate made without cooperation, consultation, request or suggestion of candidate or party committee UNLIMITED Review 2012 FEC Information Division

Electioneering Communications Any broadcast, cable or satellite communication that: Refers to clearly ID’ed candidate; Is publicly distributed; Is distributed during certain time period before election; and Is targeted to the relevant electorate 2012 FEC Information Division

Presidential Candidates Rules apply when communication can be received by 50,000 or more: In state where primary/caucus is being held within 30 daysIn state where primary/caucus is being held within 30 days Anywhere in the US from 30 days prior to convention to end of conventionAnywhere in the US from 30 days prior to convention to end of convention Anywhere in the US within 60 days prior to generalAnywhere in the US within 60 days prior to general 2012 FEC Information Division

Tell Senator Jones to Vote No Lobbying/Issue Ads < 30 day before Primary < 30 day before Primary <60 days before General <60 days before General 2012 FEC Information Division

Electioneering communications aggregating $10,000 or more must be disclosed to FEC within 24 hours of public distributionElectioneering communications aggregating $10,000 or more must be disclosed to FEC within 24 hours of public distribution Disclosed on FEC Form 9Disclosed on FEC Form 9 Electioneering Communications 2012 FEC Information Division

Coordinated Messages to General Public Other Communications to General Public Communications within Restricted Class Organization Communications 2012 FEC Information Division

Prohibited Source = Coordinated Communication Prohibited Contribution 2012 FEC Information Division

Key Point Coordination Corporations and labor organizations must avoid coordination when communicating beyond the restricted class 2012 FEC Information Division

Objective Explain how organization’s facilities and resources can be used for election-related events and purposes 2012 FEC Information Division

Contribution Ban Providing goods or services at less than the normal charge results in a contribution 2012 FEC Information Division

Contribution Ban Corporations and labor organizations are prohibited from making contributions 2012 FEC Information Division

Contribution Ban Organizations may NOT permit use of facilities/resources unless paid or under specific exceptions 2012 FEC Information Division

Campaign/Party Use of Facilities Advance payment for:Advance payment for: StaffStaff Mailing listMailing list Food serviceFood service Everything, if PAC paysEverything, if PAC pays Reimbursement for other facilitiesReimbursement for other facilities 2012 FEC Information Division

Payment Issues Source must be permissibleSource must be permissible Payment by campaign/party itself is an operating expenditurePayment by campaign/party itself is an operating expenditure Payment by PAC or individual is an in-kind contributionPayment by PAC or individual is an in-kind contribution 2012 FEC Information Division

Use of Directed Staff Advance payment for value of services, including salary, benefits and overheadAdvance payment for value of services, including salary, benefits and overhead No coercionNo coercion No collecting or forwarding of contributions by staffNo collecting or forwarding of contributions by staff 2012 FEC Information Division

Use of Lists and Food Services Must pay organization fair market value in advance for: Use of customer/client lists Use of customer/client lists Use of food services or catering arrangements Use of food services or catering arrangements 2012 FEC Information Division

Use of Meeting Rooms General Rule: Reimburse fair market value within commercially reasonable timeGeneral Rule: Reimburse fair market value within commercially reasonable time Exception: Free/discounted rate if normally offered to civic groups under same conditions and available to any other political committee upon requestException: Free/discounted rate if normally offered to civic groups under same conditions and available to any other political committee upon request If PAC pays:If PAC pays:  Must pay in advance 2012 FEC Information Division

Other Uses of Facilities General Rule: Campaign or party must reimburse at the usual/normal charge within a commercially reasonable timeGeneral Rule: Campaign or party must reimburse at the usual/normal charge within a commercially reasonable time If PAC pays as in-kind contribution, it must pay in advanceIf PAC pays as in-kind contribution, it must pay in advance 2012 FEC Information Division

Examples Reproducing materials: Use current market rate for comparable materialsReproducing materials: Use current market rate for comparable materials Office Space/Equipment: Use current market rental feesOffice Space/Equipment: Use current market rental fees Phone Banks: Use current market rate for phone bank set upPhone Banks: Use current market rate for phone bank set up 2012 FEC Information Division

Employee Volunteer Activity Incidental UseIncidental Use Work that doesn’t prevent normal workWork that doesn’t prevent normal work Safe Harbor: One hour/week or four hours/monthSafe Harbor: One hour/week or four hours/month ReimbursementReimbursement For increased overhead; orFor increased overhead; or If more than incidental use, reimburse entire cost of using facilitiesIf more than incidental use, reimburse entire cost of using facilities Employee “Asked” to Volunteer – Incidental Use Exceptions do NOT apply!Employee “Asked” to Volunteer – Incidental Use Exceptions do NOT apply! 2012 FEC Information Division

Objectives Examine restrictions on corporate/labor communicationsExamine restrictions on corporate/labor communications 2012 FEC Information Division

Coordinated Messages to General Public Other Communications to General Public Communications within Restricted Class Organization Communications 2012 FEC Information Division Review

2012 FEC Information Division Objectives Examine restrictions on corporate/labor communications Review definitions of: Express advocacy Coordination Electioneering communication

Objectives Examine restrictions on corporate/labor communicationsExamine restrictions on corporate/labor communications Review definitions of:Review definitions of: Express advocacy Express advocacy CoordinationCoordination Electioneering communicationElectioneering communication Explain how corporation/labor organization’s facilities and resources can be used for election- related events and purposesExplain how corporation/labor organization’s facilities and resources can be used for election- related events and purposes 2012 FEC Information Division

Use of Facilities General Rule: Reimburse at fair market value w/in commercially reasonable timeGeneral Rule: Reimburse at fair market value w/in commercially reasonable time Advance payment for:Advance payment for: StaffStaff Mailing listMailing list Food serviceFood service Everything, if organization’s PAC paysEverything, if organization’s PAC pays 2012 FEC Information Division Review

2012 FEC Information Division Workshop Evaluation Help Us Help You! Please complete an evaluation of this workshop FEC Information Division

FEC Jeopardy 3:30 – 4:00 pm Next Workshop